GRATUITY AS DEFERRED DIGNITY: THE PAYMENT OF GRATUITY ACT, 1972 AND ITS RESHAPING UNDER THE CODE ON SOCIAL SECURITY, 2020

Gratuity sits at an unusual crossroads in Indian labour law. It is part reward, part deferred wage and part social security, and for decades it has been governed by a compact statute, the Payment of Gratuity Act, 1972. Since 21 November 2025 the entitlement has a new statutory home in the Code on Social Security, 2020. This article explains the nature and purpose of gratuity, then works through eligibility, continuous service, calculation, forfeiture and enforcement under the 1972 Act. It then examines what the Code changed, chiefly the one-year rule for fixed-term employees and the broader definition of wages, and what it deliberately left untouched. The article argues that the older case law remains a living resource, while the new provisions leave several drafting questions that tribunals and courts will have to settle.